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Repaying student loans

Repaying student loans


Film description: Find out what happens when you finish your course and start to repay your student loan.


Students will have to pay back anything they borrow, but how much they repay each month depends on their income, not how much they borrowed.

They won’t have to repay their loan until they’ve finished or left their course and are earning over a certain amount, which is currently £25,725 a year, £2,143 a month or £494 a week.


If they earn less than that, they won’t have to repay anything (on screen "£0 a week" appears). If they’re earning more than that, they’ll repay 9% of anything over that.

And if they don’t finish repaying their loan within 30 years, it will be cancelled – so it won’t be with them forever.


Finish or leave their course


Full-time students will be due to start repaying their loan the April after they finish or leave their course. Part-time students will be due to start repaying the April 4 years after the start of their course, or the April after they finish or leave their course,  whichever comes first.


But remember, they’ll only repay if their income is over the repayment threshold.

They start making repayments


If they’re employed, their employer will take their repayment directly from their salary at the same time as tax and National Insurance.


If they’re self employed, they’ll make repayments directly to HMRC at the same time they pay tax.


If they go overseas, they’ll need to repay their loan directly to us – so they need to make sure they let us know before they go.


They’re charged interest from the day we make their first payment until their loan has been repaid in full or cancelled – but it’s important to remember that the amount of interest they’re charged doesn’t affect the amount they repay each month.


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